The company had sold 39,458 units in the same month last year, it said in a statement.
In the domestic market, sales were up 13 per cent at 39,762 units last month compared to 35,305 units in July 2016.
Exports were however down 52 per cent at 1,985 units in July against 4,153 units in the same month last year.
Sales of passenger vehicles, including Scorpio, XUV500, Xylo, Bolero and Verito, rose 21 per cent at 20,962 units compared to 17,356 units in the same month last year.
M&M President Automotive Sector Rajan Wadhera said a good monsoon, successful rollout of GST and a good run-up to the festive season gives the company confidence of achieving robust growth in second quarter.